US Inflation rate jumps by 8.5 per cent in 40-year high in bad news for Biden

Comes as Americans saw fuel prices jump as the war in Ukraine escalates.

(Getty Images)

The Bureau of Labor Statistics announced that inflation showed no signs of stopping as inflation hit a 40-year high in March over the past year, in a blow to President Joe Biden.

The Consumer Price Index for All Urban Consumers rose by 8.5 per cent in the past twelve months before seasonal adjustment. The move comes as Americans continue to see rising gas prices as the international community has severely restricted Russian-imported oil in response to Russian President Vladimir Putin’s war in Ukraine.

Gasoline, shelter, and food contributed the most to inflation. The index for energy rose by 11.0 per cent in the past month as gasoline increased by 18.3 per cent. The index for food jumped by 1.0 per cent in the past month while food at home climbed by 1.5 per cent.

The news is unwelcome for the Biden administration. On Monday, White House Press Secretary Jen Psaki sought to pin the blame on Russia’s war in Ukraine, calling inflation “the Putin price hike.”

“And we expect a large difference between core and headline inflation, reflecting the global disruptions in energy and food markets,” she told reporters Monday.

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Shelter was by far the biggest contributor to the Core CPI increase, which does not include food and energy, Core CPI rose by 0.3 per cent the past month while shelter increase by 0.5 per cent in the past month. Overall, the cost of shelter had increased by 5 per cent unadjusted for the past 12 months.

Mr Biden will head to Des Moines on Tuesday to discuss inflation.

Many Americans cite inflation as a reason they are not optimistic about the economy. A CBS News/YouGov poll found that among people who thought the economy is bad, 86 per cent cited inflation. The same poll found that 65 per cent of people thought that President Joe Biden could do more to lower gas prices.

Mr Biden’s approval rating also hit its lowest yet in that survey, going down to 42 per cent.